In a move that is set to make PVH one of the world’s largest and most profitable apparel companies, the clothing maker last week announced plans to buy The Warnaco Group in a $2.9bn deal.
As well as bringing control of the Calvin Klein underwear, jeans and sportswear lines under one roof, the acquisition also sets the stage for major expansion – not only across product categories, but also new geographies and distribution channels. In particular, top line growth is seen on the back of Warnaco's strong presence in Asia and Latin America.
US: PVH unites Calvin Klein with $2.9bn Warnaco buy
In the money: PVH's Warnaco buy to drive international growth
US retailers have yet to weigh up the full impact of Hurricane Sandy, which hit the US East coast early last week. Despite estimates suggesting they were forced to close up to 10% of their stores as the Superstorm swept through, growth in US sales held up in October according to monthly figures. But analysts continue to weigh up the storm’s longer-term impact on apparel and footwear sales.
US retail sales weather the storms in October
US: Retailers' October 2012 sales roundup
Counting the retail cost of Superstorm Sandy
Swedish fashion retailer H&M has hit back at accusations that it fails to pay adequate wages to workers in Cambodian factories - and says the situation would be a lot worse if it didn't source from the country. While Fast fashion retailer Forever 21 is being investigated by the US Department of Labor (DoL) for "significant" labour law violations among its suppliers in Southern California.
CAMBODIA: H&M hits back at low wage claims
US: Forever 21 suppliers accused of labour law violations
And environmental campaign group Greenpeace is stepping up efforts to clean up the clothing supply chain by calling on outdoor apparel firms to ban PFCs from production after tests found the chemicals in a number of leading brands. Separately, the latest report from brands who have committed to a toxic-free future by 2020 says more participation is crucial if their efforts are to have a major impact.
GERMANY: Greenpeace calls for ban on PFCs in outdoor clothing
WORLD: Expansion “crucial” to success of zero discharge initiative
Meanwhile, the European Union has released details of planned changes to its Generalized System of Preferences (GSP) system for developing countries, which are due to come into effect from the beginning of 2014. The update will reduce the number of countries that enjoy preferential access to EU markets from 176 to 89.
However, two years after it was removed from the GSP+ scheme that allowed duty-free exports to the EU, Sri Lanka's apparel industry says it has been hurt by the loss.
EU finalises shake-up of GSP trade preference scheme
Sri Lanka's garment industry feels GSP+ loss
Until next time...
Leonie Barrie
Managing Editor
Web: http://www.just-style.com
Email: editor@just-style.com
Twitter: http://twitter.com/juststyle
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